How is the Spread in Forex Trading Measured?

The spread is usually measured in pips, which is the smallest unit of the price movement of a currency pair.

For most currency pairs, one pip is equal to 0.0001.

An example of a 2 pip spread for EUR/USD would be 1.1051/1.1053.

Bid, Ask and Spread Example

Currency pairs involving the Japanese yen are quoted to only 2 decimal places (unless there are fractional pips, then it’s 3 decimals).

For example, USD/JPY would be 110.00/110.04. This quote indicates a spread of 4 pips.


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